Jentzsch, Nicola; Sapi, Geza; Suleymanova, Irina - Düsseldorf Institute for Competition Economics (DICE), … - 2012
It is increasingly observable that competitors in different industries share customer data, which can be used for targeted pricing. We propose a modified Hotelling model with two-dimensional consumer heterogeneity to analyze the incentives for such sharing and its ensuing welfare effects. We...